backtop


Print 17 comment(s) - last by navair2.. on Feb 24 at 9:15 PM

They don't want the automaker to end up like A123 Systems

After bankrupt battery company A123 Systems was (mostly) acquired by a Chinese company, two U.S. senators now worry that automaker Fisker Automotive will have the same fate.

Sens. Chuck Grassley (R-Iowa) and John Thune (R-South Dakota) have expressed concern that taxpayer dollars will support a company with foreign ownership if Fisker is acquired by a Chinese company.

"Senator Thune and I asked the Energy Department about potential foreign ownership of Fisker in June 2012. When we raised concerns about taxpayers supporting a company with foreign ownership, the Energy Department waved those concerns away," Grassley said. "Now, those concerns may soon become a reality. Like A123, this looks like another example of taxpayer dollars going to a failed experiment. Technology developed with American taxpayer subsidies should not be sold off to China. I hope there's at least some accountability at the Department of Energy, but given its track record, I'm not holding my breath."

It has been strongly suggested that two Chinese companies -- Geely Automotive and Dongfeng Motor Corp. -- are looking for a majority stake in Fisker. It has also been rumored that Fisker could move all of its auto production to China if it made a deal with a Chinese company.


Fisker Karma

A deal isn't expected to be made until next month at the earliest. Fisker made mention that it is considering offers from all over the world -- not just China.

Fisker received $529 million in U.S. Department of Energy (DOE) loans in April 2010. The loans were part of a program to progress development of high-tech vehicles, where Fisker received $169 million for Karma plug-in engineering and $359 million for Nina production. The loans were also meant to revamp a closed General Motors plant in Wilmington, Delaware for Fisker EV production. 
 
However, Fisker fell a little behind on its production schedule, and in May 2011, DOE froze the loans due to "unmet milestones." Fisker had only drawn $193 million of it at that point.
In October 2012, the House Oversight and Government Reform Committee decided to look into the original terms of its loan to Fisker Automotive, questioning whether DOE will step in to help the electric vehicle (EV) automaker if it goes bankrupt and investors are allowed to retrieve their money.


In December 2012, Fisker's battery maker A123 Systems was acquired by Chinese firm Wanxiang Group for about $260 million. A123 filed for bankruptcy in October 2012.

Earlier this month, Fisker said it hoped to restart production of its Karma plug-in "fairly soon" as it waits for A123 to come out of this bankruptcy situation.

Source: The Detroit News



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

Communism?
By navair2 on 2/24/2013 9:15:34 PM , Rating: 2
You know, for a country that espouses communist ideals, China sure is going about things in a decidedly UNcommunist way. Maybe they're trying to hold things together by combining the politics of communism with the "free" market of capitalism.

From what I've heard of Marxism, the two are mutually exclusive; So how in the world can they call themselves "communist"? LOL.

Now for the clincher: America, you did this to yourselves by buying imports and allowing the global market access to your buying power....and you wonder where all your jobs went.




"The whole principle [of censorship] is wrong. It's like demanding that grown men live on skim milk because the baby can't have steak." -- Robert Heinlein














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki